FxWirePro: Gold faces strong support at $1240, good to buy on dips

• Major support - $1242 (90- W EMA).

• Major resistance - $1261 (200- day MA).

• The yellow metal plummeted on Friday and declined till $1243, a level not seen till Jun 7th 2016. It has closed around $1257.39 slightly below 200- day MA ($1259.95).

• Gold has declined sharply on account of strong U.S Dollar. U.S Dollar index (DXY) gained sharply from the low of 95.42 made on previous week till 97.19 this week.
   
• The yellow metal has gained slightly in the today’s Asian session till $1264.50 yesterday.
• The precious metal’s minor resistance is around $1273 and any violation above targets $1280 (9 -day EMA)/ $1290 (10- day MA)/$1299 (Weekly Tenken-Sen).It should close above $1300 for further bullishness.
• On the lower side $1242 (90- W EMA) will be acting as major support any break below targets $1235/$1203 (100 W MA).

It is good to buy on dips around $1255-58 with SL around $1240 for the TP of $1280/$1299